I'm your local realtor with a proven track record of selling homes swiftly and at top dollar. My ability to analyze the market properly gives me the confidence to ask you for the opportunity to help you with your real estate needs.Early February was volatile for the stock market and had many people worried. Luckily, the stock market almost fully recovered. When stocks rise, the demand for treasury bonds falls which causes treasury bond yields to move higher. The opposite occurs on down days for the stock market.
When 10 year treasury bond yields rise, mortgage interest rates rise as well. Currently the 10 year treasury yield is 2.94% (subject to change at anytime) and soon enough will reach 3%. The Federal Reserve is planning to raise interest rates this year to fight inflation which will make mortgage rates rise again. Currently the fed funds rates stands at 2%. Another important factor was in February when the Senate passed a two-year budget deal. This will increase the budget deficit. Therefore, will increase the future supply of bonds, which put upward pressure on treasury bond yields. Thus, higher mortgage interest rates.
As these rates continue to rise, owning a home becomes more expensive for home buyers. These home buyer setbacks can correlate with home values because home prices can fall when a buyer's purchasing power is low. Luckily, housing supply is extremely low and there are many buyers on the market so home sellers are still in a good position to sell. Basic economics- supply & demand. Sell your home sooner than later or wait for the next business cycle. I'm available to help you with your real estate needs, give me a call at anytime. Thank you.